Pharoah Construction was awarded a contract to construct an interchange at the junction of two major freeways in a Canadian cityat a total contract price of $10,140,000. The estimated total cost to complete the project is $8,112,000, and it is expected to taketwo years. Using the percentage-of-completion method and the cost-to-cost basis, prepare the journal entry to recognize the revenue andgross proft for the frst year.

Pharoah Construction was awarded a contract to construct an interchange at the junction of two major freeways in a Canadian cityat a total contract price of $10,140,000. The estimated total cost to complete the project is $8,112,000, and it is expected to taketwo years. Using the percentage-of-completion method and the cost-to-cost basis, prepare the journal entry to recognize the revenue andgross proft for the frst year.

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 88P

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